The future of Crown Resorts’ casinos in Melbourne, Sydney and Perth is under question after a public inquiry into the gambling group’s operations heard that the company is unsuitable to hold a casino operating licence. On November 3rd, the inquiry also heard that the influence of the casino group’s major shareholder James Packer affected the mass arrest of Crown’s staff in China.
The assertions came as part of the closing statement from the lawyer who was running the probe aimed at establishing whether Crown Resorts is fit for holding its operating licence for the planned Sydney waterfront casino tower in Barangaroo. The project, which is set to open by the end of 2020, is worth AU$2.2 billion.
Yesterday, Gladys Berejiklian, the Premier of New South Wales (NSW), explained that she was seeking advice about whether to address the gambling company and ask it to put off the planned December opening of its Barangaroo casino. There were calls for the authorities in the state of Victoria to suspend the group’s casino licence.
During the inquiry that took place yesterday, the counsel assisting Senior Counsel Adam Bell explained for the NSW Independent Liquor and Gaming Authority (ILGA) that evidence presented during the public hearings showed that the gambling giant was not suitable to hold a casino licence in the state.
Future of Crown Resorts’ Casinos in Sydney, Melbourne and Perth Uncertain
The probe was rolled out in August 2019, after a series of reports regarding the Crown’s dealings were published by several media hubs.
During the investigation, the Australian gambling giant was examined for its failure to prevent money laundering at its casinos, as well as for its alleged links to criminal organisations associated with Mr Packer’s decision to sell his shares in Crown to Melco Resorts that may have breached the conditions of the casino company’s licence in the state of NSW.
As unveiled yesterday by Mr Bell, the overall governance of Crown Resorts faced the significant negative impact of the dominance which James Packer’s private investment vehicle had over the casino giant. Allegedly, this was a contributing factor to the arrests of Crown’s staff in China and turned out to be what Mr Bell described as “ultimately harmful to the public interest”.
Although the remarks are not considered part of formal recommendations, they raise the prospect that the result of the inquiry will not be in Crown Resorts’ favour. The judge overseeing the process is required to table their final report with recommendations by February 2021 and may decide to strip the Australian gambling giant of its Barangaroo casino licence or tougher conditions for the property’s operation may be imposed.
Crown has previously said that it is taking steps to guarantee the improvement of its corporate governance, such as ending an information-sharing agreement with Mr Packer and banning the company’s relationships with so-called junket operators.
- Author
Olivia Cole
